BERLIN, July 16 (Reuters) - U.S. tariffs of 30% on

imports from the EU, planned by President Donald Trump, could

cost the German economy about a quarter of a percentage point in

growth this year and next compared with current forecasts, the

IMK institute said on Wednesday.

Trump has said he will impose 30% tariffs on imports from

the EU from August 1 if there is no progress on trade talks.

That would mean zero growth this year and 1.2% growth next

year in Germany, Europe's biggest economy, according to the IMK

institute.

This compares with its previous forecast for a recovery

from the fourth quarter and average growth of 0.2% for 2025,

rising to 1.5% next year, driven by a planned boost in public

investment and defence spending.

"A rapid implementation of the planned public investment

offensive could significantly reduce the economic risks in

Germany," said the IMK.

"Growth losses in the U.S. would be far greater than in

Germany," it said, adding the U.S. was until last year the most

important export market for Germany with an almost 10% share.